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Established Member
Posts: 34
Registered: ‎01-03-2008
0

Buying a vehicle after Ch13 discharge.....

Just wondering what were  your experiences were with buying a vehicle after a chapter 13 discharge??? We are waiting on our discharge papers and  we were hoping to get a newer vehicle shortly after receiving them.. We will have our trade ( probably not worh a whole lot maybe 3000) and some money to put down...Plan was to take our discharge papers with us to show we are done with the bankruptcy....Do you forsee any problems??? I dont expect the best rates of course and is there usually a waiting period that banks/credit unions use before they will loan after a discharge?  Any input is appreciated...:smileyhappy:

 

Moderator Emeritus
Posts: 4,470
Registered: ‎12-31-2008
0

Re: Buying a vehicle after Ch13 discharge.....

We really didn't have much problem buying a car a few months after discharge.

Got a pretty decent rate, as well.

We went through a local CU which does a majority of the car loans in our state.

 

We didn't bring in our discharge papers, but it was showing on our credit reports as discharged.  So if you're waiting for the disharge to report, I can see why you may want to have those in hand.

 

Most folks do have to clean up their credit reports after a BK.  So my first recommendation would be to pull all 3 from annualcreditreport.com and make sure they're accurate.  And I would pull a FICO score from here, as well.  Good to know what the car dealers are seeing.

 

Congrats on completing  the CH 13!  And I hope you enjoy your new vehicle.  My favorite article on car buying?  "The Real Reason You're Broke"  Gotta love Liz!  :smileywink:


Just puttin' syrup on something, don't make it pancakes.
New Contributor
Posts: 61
Registered: ‎12-18-2011
0

Re: Buying a vehicle after Ch13 discharge.....

I didnt buy a car after my discharge but watch the mail for circulars.  the car companies will begin the hound you for biz and their 2nd chance programs.  Be scrupulous...I think they pre-approved me for 39k one month after.  congrats and good luck.


Starting Score: 479 (TU) 481 (EQ) 508 (EX FAKO) November 2011
Current Score: 687 (TU 3/26/2012 Lender pull) 658 (EQ 3/15/12 Score Watch) 640 (EX FAKO)
Goal Score: 740+


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Valued Member
Posts: 28
Registered: ‎02-27-2012
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Re: Buying a vehicle after Ch13 discharge.....

Was your current Vehicle (Trade In) included in the Bankrutpcy? I issue i ran into was that it took 4-ever for the Bank to release the Title to me, They required that the Courts show the Case was "Closed", Even though i had the Discharge Date and Copies from the Courts it took about a Extra Month for the Bank to Send the Title my Way. It seems the Court system doesnt get in much of a Hurry to Stop Wage orders/Refund money when you get near the End of your Bankruptcy.

Chapter 13, Discharged 10/11
02/28/12 TU 595/ Eq 647/ Ex 647
01/30/13 TU 656/Eq 676
9/30/13 TU 694 EQ 687 Ex 727
10/25/13 Fico scores TU 740 EQ 680 EX 725
11/1/13 chapter 13 finally fell off EQ 702
Established Member
Posts: 34
Registered: ‎01-03-2008
0

Re: Buying a vehicle after Ch13 discharge.....

No it wasn't...We have the title.. The vehicle that we paid outside of our plan we paid off last year and had no problem getting the title...we were kind of surprised
Moderator Emeritus
Posts: 4,470
Registered: ‎12-31-2008
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Re: Buying a vehicle after Ch13 discharge.....


DaBall wrote:

Was your current Vehicle (Trade In) included in the Bankrutpcy? I issue i ran into was that it took 4-ever for the Bank to release the Title to me, They required that the Courts show the Case was "Closed", Even though i had the Discharge Date and Copies from the Courts it took about a Extra Month for the Bank to Send the Title my Way. It seems the Court system doesnt get in much of a Hurry to Stop Wage orders/Refund money when you get near the End of your Bankruptcy.


Wow - that stinks.

Definitely a YMMV thang.  Our vehicles were IIB, they were paid off earlier than they would have been on their original loan payment plan.  The cars were paid off quite a bit before the BK was completed and discharged.  And we had no issues getting the titles from the CU at the time they were paid off.  

 

I agree that the courts seem to really drag their feet near the end of a CH 13 BK.  When we called to ask some basic questions about final discharge dates, we got our head bit off, and were threatened with further delays if we so much as thought about dialing them up.  :smileyfrustrated:  I guess if we would have known it's so pokey at the end, it would have been less stressful at the time.

Just puttin' syrup on something, don't make it pancakes.
New Visitor
Posts: 1
Registered: ‎07-10-2012
0

Re: Buying a vehicle after Ch13 discharge.....

My husband and I are in the final stage of our CH13 BK. It has been extremely frustrating trying to get any response from our Trustee's office in regards to the progress being made towards closing our case! I definitely agree with those of you who have posted on here about how the Trustee's office is not expedient when it comes to issuing a cease witbholdings letter to our employer ($1165/2wks is taken out of checks) or completing a final audit so that our case can be closed. We have had a negative balance since May 1 and it looks like money will still be taken out of our pay through August 3. We are hoping that our case will be closed before the end of August.

Like many of you posting on here, my husband and I are looking to purchase a new vehicle as soon as our CH13 case is closed. We realize that we will not qualify for prime interest rates, but do not want to pay an outlandish interest rate. What sort of interest rates are available for people like us?
Established Member
Posts: 15
Registered: ‎11-02-2011
0

Re: Buying a vehicle after Ch13 discharge.....

Unless you're set on a particular make/model, I'd do as much research as you can on each company you may be considering.  I scowered the auto loan forum on this site and while I was thinking of looking into Nissan, I found that their higher end brand, Infiniti, was much more bankruptcy friendly as well as credit lenient (They're the same company if you weren't aware).  I was discharged from my CH13 2/29/12, and 21 days later, was approved for a lease on 3/20/12 and the finance manager got me Tier 1 rates.  He had to argu back/fourth w/the bank as they wanted to give me tier 2 rates but he fought hard for them to focus on my BK file date of 9/11/08 rather than my discharge date of 2/29/12.  My highest score at the time was 670 Eqfx which is what they used.  I'm sure this is very much a YMMV situation, but I'd just say research as much as possible before going to a dealership. 

10/25/11: TU 605, EQ 655, EX ?
03/13/12: TU 626, EQ 670, EX ?
Member
Posts: 17
Registered: ‎10-29-2010
0

Re: Buying a vehicle after Ch13 discharge.....

I bought a new truck the week I got my discharge papers, lol.. I had had my old truck for about 10 years and it was tired. This was in Dec 2010, I got 9.9% on a used truck. Had no issues getting a loan, just had to pay a little higher rate.

Established Member
Posts: 34
Registered: ‎01-03-2008
0

Re: Buying a vehicle after Ch13 discharge.....

We did end up getting a vehicle the week we got our discharge papers :smileyhappy: Had no problem getting a loan but like a few people have said we had a higher interest rate. ( 14.9  ick) Our plan was to go thru our credit union and they offered us an 8.9 interest rate but when the paper work went thru they have a 90 dAY wait after bankruptcy. :smileysad: So our plan is to pay the higher rate for six months and then refinance thru our credit union. Hopefully the rate might be a smidge lower since our credit score will be more than likely better since we have a credit card and auto loan that we are paying on time every month....:smileyhappy:

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